Which of the Following Criteria Should a Marketing Manager Use

question 197

Multiple Choice

Which of the following criteria should a marketing manager use when segmenting a broad product-market?

• A) The segments should be operational--i.e., only quantitative dimensions are useful.
• B) The people in different segments should be as heterogeneous as possible with respect to their likely response to marketing mix variables.
• C) The people within a market segment should be as heterogeneous as possible with respect to their likely response to marketing mix variables.
• D) The market segments should be substantial--i.e., big enough to minimize the firm's costs.
• E) All of the above.

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Definitions:

Nominal Wages

The wage earned by workers as expressed in current dollars, without adjustment for inflation, representing the face value of the pay received.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.

Real Wages

The purchasing power of wages, reflecting the quantity of goods and services that can be bought with wages after adjusting for inflation.

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogenous product.